Morrisons sells £45m stake in US online grocer

MORRISONS has completed the sale of its stake in US online food retailer Fresh Direct in a deal worth £45m.

Morrisons acquired the business, which serves the US states of New York, New Jersey and Connecticut, in 2011 for £32m.

It says that the sale represents a premium of £14m to the £31m holding value of the equity investment.

Morrisons first announced it intended to dispose of its 10% stake in the business along with Kiddicare in March 2014 as it attempted to restructure its business.

Fresh Direct was acquired under the stewardship of former CEO Dalton Philips as he looked to develop the group’s online offering.

The Bradford chain said it wanted to use Fresh Direct’s model as a template for its online offering. It launched a limited online offering in January 2014.

Last week Morrisons announced it was renegotiating the terms of its contract with Ocado , paying reduced fees to the online retailer.

Likened to a US version of Ocado, it was founded in 1999 by a former investment banker, Jason Ackerman, and grocery retailer Joe Fedele.